Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its third-quarter 2026 investor letter for the “Baird Chautauqua International and Global Growth Fund”. The letter can be downloaded here. The broad equity markets posted modest gains in the third quarter, despite significant volatility and rotation beneath the surface. Market leadership shifted throughout the quarter, ultimately favoring U.S. technology. Key macro events included rising oil prices due to Middle East conflict and persistent inflation, prompting interest rate hikes from the Fed, ECB, and BOJ. The firm adjusted portfolios by reducing exposure to AI infrastructure and reallocating to businesses with strong fundamentals. The third quarter returns were +3.74% (vs. +0.48% MSCI ACWI ex-U.S.) for the Baird Chautauqua International Growth Fund and 3.67% (vs. +1.60% MSCI ACWI) for the Global Growth Fund, both beating the benchmarks. Stock selection in health care, IT, real estate, and industrials generated the quarter’s strongest relative gains. These contributions were partially offset by stock selection in utilities and a lack of energy exposure. Also, check the strategy’s top five holdings to see its best picks in 2026.
In its Q3 2026 investor letter, Baird Chautauqua International and Global Growth Fund highlighted ASML Holding N.V. (NASDAQ:ASML). ASML Holding N.V. (NASDAQ:ASML) is a Dutch-based semiconductor company that provides lithography solutions. On October 09, 2026, ASML Holding N.V. closed at $1,780.34 per share. Over the past month, ASML Holding N.V. (NASDAQ:ASML) returned 11.83%, while its shares have gained 78.90% in the last 52 weeks. ASML Holding N.V. (NASDAQ:ASML) has a market capitalization of $684.96 billion, and its stock has traded within a 52-week range of $946.11 to $1,999.96.
Baird Chautauqua International and Global Growth Fund stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q3 2026 investor letter:
“ASML Holding N.V.’s (NASDAQ:ASML) stock price declined in 3Q26 along with other semiconductor stocks, after reaching an all-time high on June 30, 2026. This came despite better-than-expected earnings and raised guidance in its 2Q26 report. Sector-wide volatility weighed on the shares, but ASML still outperformed the PHLX Semiconductor Index (SOX) for the quarter.”
ASML Holding N.V. (NASDAQ:ASML) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 140 hedge fund portfolios held ASML Holding N.V. (NASDAQ:ASML) at the end of the second quarter, which was 133 in the previous quarter. While we acknowledge the potential of ASML Holding N.V. (NASDAQ:ASML) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.